The Manitowoc Company Reports Third-Quarter 2024 Financial Results
Manitowoc (NYSE: MTW) reported a third-quarter net loss of $7.0 million, or $0.20 per diluted share, with adjusted net loss of $2.9 million ($0.08 per diluted share). Orders decreased 20.0% year-over-year to $424.7 million, with backlog at $742.1 million. Net sales remained flat at $524.8 million, while adjusted EBITDA declined 21.3% to $26.2 million. Non-new machine sales reached $617.5 million for trailing twelve months. The company expects full-year adjusted EBITDA to be at the low end of guidance due to slower demand for new cranes amid U.S. election uncertainty and interest rate concerns.
Manitowoc (NYSE: MTW) ha riportato una perdita netta nel terzo trimestre di 7,0 milioni di dollari, pari a 0,20 dollari per azione diluita, con una perdita netta rettificata di 2,9 milioni di dollari (0,08 dollari per azione diluita). Gli ordini sono diminuiti del 20,0% rispetto all'anno precedente, arrivando a 424,7 milioni di dollari, mentre il portafoglio ordini ha raggiunto 742,1 milioni di dollari. Le vendite nette sono rimaste stabili a 524,8 milioni di dollari, mentre l'EBITDA rettificato è diminuito del 21,3%, pari a 26,2 milioni di dollari. Le vendite di macchine usate non nuove hanno raggiunto 617,5 milioni di dollari nei ultimi dodici mesi. La società prevede che l'EBITDA rettificato per l'intero anno si attesti all'estremità bassa delle previsioni a causa di una domanda più lenta per le nuove gru, complicata dall'incertezza legata alle elezioni negli Stati Uniti e dalle preoccupazioni sui tassi d'interesse.
Manitowoc (NYSE: MTW) reportó una pérdida neta de 7.0 millones de dólares en el tercer trimestre, o 0.20 dólares por acción diluida, con una pérdida neta ajustada de 2.9 millones de dólares (0.08 dólares por acción diluida). Los pedidos disminuyeron un 20.0% interanual, alcanzando 424.7 millones de dólares, con una cartera de pedidos de 742.1 millones de dólares. Las ventas netas se mantuvieron estables en 524.8 millones de dólares, mientras que el EBITDA ajustado disminuyó un 21.3%, totalizando 26.2 millones de dólares. Las ventas de máquinas usadas no nuevas alcanzaron 617.5 millones de dólares en los últimos doce meses. La empresa espera que el EBITDA ajustado del año completo esté en el extremo inferior de las proyecciones debido a una menor demanda de grúas nuevas en medio de la incertidumbre electoral en EE.UU. y preocupaciones sobre las tasas de interés.
매니토웍 (NYSE: MTW)는 3분기에 700만 달러의 순손실을 보고했으며, 희석주당 0.20달러에 해당하고, 조정된 순손실은 290만 달러(희석주당 0.08달러)로 나타났습니다. 주문은 전년 대비 20.0% 감소하여 4억2470만 달러에 이르렀으며, 백로그는 7억4210만 달러입니다. 순매출은 5억2480만 달러로 제자리걸음을 걸었고, 조정된 EBITDA는 21.3% 감소하여 2620만 달러로 나타났습니다. 중고 기계 판매는 최근 12개월 동안 6억1750만 달러에 달했습니다. 회사는 미국의 선거 불확실성과 금리 우려로 인해 새로운 크레인에 대한 수요가 느려지면서 연간 조정 EBITDA가 가이던스의 하단에 위치할 것으로 예상하고 있습니다.
Manitowoc (NYSE: MTW) a annoncé une perte nette de 7,0 millions de dollars au troisième trimestre, soit 0,20 dollar par action diluée, avec une perte nette ajustée de 2,9 millions de dollars (0,08 dollar par action diluée). Les commandes ont diminué de 20,0 % par rapport à l'année précédente, atteignant 424,7 millions de dollars, tandis que le carnet de commandes s'élevait à 742,1 millions de dollars. Les ventes nettes sont restées stables à 524,8 millions de dollars, tandis que l'EBITDA ajusté a baissé de 21,3 % pour atteindre 26,2 millions de dollars. Les ventes de machines d'occasion non nouvelles ont atteint 617,5 millions de dollars au cours des douze derniers mois. L'entreprise s'attend à ce que l'EBITDA ajusté pour l'année entière soit à la limite inférieure des prévisions en raison d'une demande plus faible pour les nouvelles grues, en raison de l'incertitude liée aux élections américaines et des préoccupations concernant les taux d'intérêt.
Manitowoc (NYSE: MTW) meldete im dritten Quartal einen Nettoverlust von 7,0 Millionen Dollar, was 0,20 Dollar pro verwässerter Aktie entspricht, während der bereinigte Nettoverlust 2,9 Millionen Dollar (0,08 Dollar pro verwässerter Aktie) betrug. Die Aufträge gingen im Jahresvergleich um 20,0 % auf 424,7 Millionen Dollar zurück, während der Auftragsbestand bei 742,1 Millionen Dollar lag. Die Nettoumsätze blieben mit 524,8 Millionen Dollar stabil, während das bereinigte EBITDA um 21,3 % auf 26,2 Millionen Dollar fiel. Der Umsatz mit gebrauchten Maschinen betrug in den letzten zwölf Monaten 617,5 Millionen Dollar. Das Unternehmen erwartet, dass das bereinigte EBITDA für das Gesamtjahr am unteren Ende der Prognose liegen wird, aufgrund einer verlangsamten Nachfrage nach neuen Kränen im Zuge der unsicheren US-Wahlen und der Bedenken über die Zinssätze.
- Non-new machine sales reached record $617.5 million TTM
- Net sales maintained stable at $524.8 million year-over-year
- Q3 net loss of $7.0 million ($0.20 per diluted share)
- Orders decreased 20.0% year-over-year to $424.7 million
- Adjusted EBITDA declined 21.3% year-over-year
- Full-year adjusted EBITDA guidance lowered to low end of range
Insights
The Q3 results paint a concerning picture for Manitowoc. The company reported a
The bright spot is non-new machine sales reaching
Orders in the third quarter were
“During the quarter, we made good progress on our CRANES+50 strategy; non-new machine sales reached a new high of
“Looking longer term, we are optimistic as central banks continue to cut interest rates, monies from the Infrastructure and CHIPS bills begin to flow, activity in the
Investor Conference Call
The Manitowoc Company will host a conference call for security analysts and institutional investors to discuss its third-quarter 2024 earnings results on Thursday, October 31, 2024, at 10:00 a.m. ET (9:00 a.m. CT). A live audio webcast of the call, along with the related presentation, will be available via webcast on the Manitowoc website at http://ir.manitowoc.com in the "Events & Presentations" section. A replay of the conference call will also be available at the same location on the website.
About The Manitowoc Company, Inc.
The Manitowoc Company was founded in 1902 and has over a 120-year tradition of providing high-quality, customer-focused products and support services to its markets. Headquartered in
Footnote
(1)Adjusted net income (loss), adjusted diluted net income (loss) per share (“Adjusted DEPS”), EBITDA, adjusted EBITDA, adjusted operating income, adjusted return on invested capital ("Adjusted ROIC"), and free cash flows are financial measures that are not in accordance with
Forward-looking Statements
This press release includes “forward-looking statements” intended to qualify for the safe harbor from liability under the Private Securities Litigation Reform Act of 1995. Any statements contained in this press release that are not historical facts are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements are based on the current expectations of the management of the Company and are subject to uncertainty and changes in circumstances. Forward-looking statements include, without limitation, statements typically containing words such as “intends,” “expects,” “anticipates,” “targets,” “estimates,” and words of similar import. By their nature, forward-looking statements are not guarantees of future performance or results and involve risks and uncertainties because they relate to events and depend on circumstances that will occur in the future. There are a number of factors that could cause actual results and developments to differ materially from those expressed or implied by such forward-looking statements. Factors that could cause actual results and developments to differ materially include, among others:
- Macroeconomic conditions, including inflation, high interest rates and recessionary concerns, as well as continuing global supply chain constraints, labor constraints, logistics constraints and cost pressures such as changes in raw material and commodity costs, have had, and may continue to have, a negative impact on Manitowoc’s ability to convert backlog into revenue which could, and has, impacted its financial condition, cash flows, and results of operations (including future uncertain impacts);
- actions of competitors;
- changes in economic or industry conditions generally or in the markets served by Manitowoc;
-
geopolitical events, including the ongoing conflicts in
Ukraine and in theMiddle East , other political and economic conditions and risks and other geographic factors, has had and may continue to lead to market disruptions, including volatility in commodity prices (including oil and gas), raw material and component costs, energy prices, inflation, consumer behavior, supply chain, and credit and capital markets, and could result in the impairment of assets; - changes in customer demand, including changes in global demand for high-capacity lifting equipment, changes in demand for lifting equipment in emerging economies and changes in demand for used lifting equipment including changes in government approval and funding of projects;
- the ability to convert backlog, orders and order activity into sales and the timing of those sales;
- failure to comply with regulatory requirements related to the products and aftermarket services the Company sells;
- the ability to capitalize on key strategic opportunities and the ability to implement Manitowoc’s long-term initiatives;
- impairment of goodwill and/or intangible assets;
- changes in revenues, margins and costs;
- the ability to increase operational efficiencies across Manitowoc and to capitalize on those efficiencies;
- the ability to generate cash and manage working capital consistent with Manitowoc’s stated goals;
- work stoppages, labor negotiations, labor rates and labor costs;
- the Company’s ability to attract and retain qualified personnel;
- changes in the capital and financial markets;
- the ability to complete and appropriately integrate acquisitions, strategic alliances, joint ventures or other significant transactions;
- issues associated with the availability and viability of suppliers;
- the ability to significantly improve profitability;
- realization of anticipated earnings enhancements, cost savings, strategic options and other synergies, and the anticipated timing to realize those savings, synergies and options;
- the ability to focus on customers, new technologies and innovation;
- uncertainties associated with new product introductions, the successful development and market acceptance of new and innovative products that drive growth;
- the replacement cycle of technologically obsolete products;
- risks associated with high debt leverage;
- foreign currency fluctuation and its impact on reported results;
- the ability of Manitowoc's customers to receive financing;
- risks associated with data security and technological systems and protections;
- the ability to direct resources to those areas that will deliver the highest returns;
- risks associated with manufacturing or design defects;
- natural disasters, other weather events, pandemics and other public health crises disrupting commerce in one or more regions of the world;
- issues relating to the ability to timely and effectively execute on manufacturing strategies, general efficiencies and capacity utilization of the Company’s facilities;
- the ability to focus and capitalize on product and service quality and reliability;
- issues associated with the quality of materials, components and products sourced from third parties and the ability to successfully resolve those issues;
- issues related to workforce reductions and potential subsequent rehiring;
- changes in laws throughout the world, including governmental regulations on climate change;
- the inability to defend against potential infringement claims on intellectual property rights;
- the ability to sell products and services through distributors and other third parties;
- issues affecting the effective tax rate for the year;
- acts of terrorism; and
- other risks and factors detailed in Manitowoc's 2023 Annual Report on Form 10-K and its other filings with the United States Securities and Exchange Commission.
Manitowoc undertakes no obligation to update or revise forward-looking statements, whether as a result of new information, future events, or otherwise. Forward-looking statements only speak as of the date on which they are made. Information on the potential factors that could affect the Company's actual results of operations is included in its filings with the Securities and Exchange Commission, including but not limited to its Annual Report on Form 10-K for the fiscal year ended December 31, 2023.
THE MANITOWOC COMPANY, INC. |
||||||||||||||||
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS |
||||||||||||||||
(In millions, except per share and share amounts) |
||||||||||||||||
|
|
Three Months Ended
|
|
|
Nine Months Ended
|
|
||||||||||
|
|
2024 |
|
|
2023 |
|
|
2024 |
|
|
2023 |
|
||||
Net sales |
|
$ |
524.8 |
|
|
$ |
520.9 |
|
|
$ |
1,582.0 |
|
|
$ |
1,632.0 |
|
Cost of sales |
|
|
437.2 |
|
|
|
424.1 |
|
|
|
1,302.2 |
|
|
|
1,305.9 |
|
Gross profit |
|
|
87.6 |
|
|
|
96.8 |
|
|
|
279.8 |
|
|
|
326.1 |
|
Operating costs and expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Engineering, selling and administrative expenses |
|
|
78.9 |
|
|
|
77.4 |
|
|
|
238.6 |
|
|
|
240.1 |
|
Amortization of intangible assets |
|
|
0.7 |
|
|
|
0.7 |
|
|
|
2.2 |
|
|
|
2.4 |
|
Restructuring expense |
|
|
0.5 |
|
|
|
0.7 |
|
|
|
3.4 |
|
|
|
1.0 |
|
Total operating costs and expenses |
|
|
80.1 |
|
|
|
78.8 |
|
|
|
244.2 |
|
|
|
243.5 |
|
Operating income |
|
|
7.5 |
|
|
|
18.0 |
|
|
|
35.6 |
|
|
|
82.6 |
|
Other income (expense): |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Interest expense |
|
|
(9.6 |
) |
|
|
(8.4 |
) |
|
|
(28.4 |
) |
|
|
(25.5 |
) |
Amortization of deferred financing fees |
|
|
(0.3 |
) |
|
|
(0.3 |
) |
|
|
(1.0 |
) |
|
|
(1.0 |
) |
Other income (expense) - net |
|
|
(4.9 |
) |
|
|
1.1 |
|
|
|
(3.9 |
) |
|
|
(10.0 |
) |
Total other expense |
|
|
(14.8 |
) |
|
|
(7.6 |
) |
|
|
(33.3 |
) |
|
|
(36.5 |
) |
Income (loss) before income taxes |
|
|
(7.3 |
) |
|
|
10.4 |
|
|
|
2.3 |
|
|
|
46.1 |
|
Provision (benefit) for income taxes |
|
|
(0.3 |
) |
|
|
— |
|
|
|
3.2 |
|
|
|
(1.0 |
) |
Net income (loss) |
|
$ |
(7.0 |
) |
|
$ |
10.4 |
|
|
$ |
(0.9 |
) |
|
$ |
47.1 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Per Share Data and Share Amounts: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Basic net income (loss) per common share |
|
$ |
(0.20 |
) |
|
$ |
0.30 |
|
|
$ |
(0.03 |
) |
|
$ |
1.34 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Diluted net income (loss) per common share |
|
$ |
(0.20 |
) |
|
$ |
0.29 |
|
|
$ |
(0.03 |
) |
|
$ |
1.31 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Weighted average shares outstanding - basic |
|
|
35,123,015 |
|
|
|
35,080,037 |
|
|
|
35,251,847 |
|
|
|
35,095,211 |
|
Weighted average shares outstanding - diluted |
|
|
35,123,015 |
|
|
|
35,787,704 |
|
|
|
35,251,847 |
|
|
|
35,836,672 |
|
THE MANITOWOC COMPANY, INC. |
||||||||
CONDENSED CONSOLIDATED BALANCE SHEETS |
||||||||
(In millions, except par value and share amounts) |
||||||||
|
|
September 30, 2024 |
|
|
December 31, 2023 |
|
||
Assets |
|
|
|
|
|
|
||
Current Assets: |
|
|
|
|
|
|
||
Cash and cash equivalents |
|
$ |
22.9 |
|
|
$ |
34.4 |
|
Accounts receivable, less allowances of |
|
|
272.6 |
|
|
|
278.8 |
|
Inventories — net |
|
|
769.9 |
|
|
|
666.5 |
|
Other current assets |
|
|
38.6 |
|
|
|
53.3 |
|
Total current assets |
|
|
1,104.0 |
|
|
|
1,033.0 |
|
|
|
|
|
|
|
|
||
Property, plant and equipment — net |
|
|
366.0 |
|
|
|
366.1 |
|
Operating lease right-of-use assets |
|
|
57.4 |
|
|
|
59.7 |
|
Goodwill |
|
|
80.0 |
|
|
|
79.6 |
|
Other intangible assets — net |
|
|
123.8 |
|
|
|
125.6 |
|
Other non-current assets |
|
|
45.5 |
|
|
|
42.7 |
|
Total assets |
|
$ |
1,776.7 |
|
|
$ |
1,706.7 |
|
Liabilities and Stockholders' Equity |
|
|
|
|
|
|
||
Current Liabilities: |
|
|
|
|
|
|
||
Accounts payable and accrued expenses |
|
$ |
445.6 |
|
|
$ |
457.4 |
|
Customer advances |
|
|
17.6 |
|
|
|
19.2 |
|
Short-term borrowings and current portion of long-term debt |
|
|
40.5 |
|
|
|
13.4 |
|
Product warranties |
|
|
38.5 |
|
|
|
47.1 |
|
Other liabilities |
|
|
18.9 |
|
|
|
26.2 |
|
Total current liabilities |
|
|
561.1 |
|
|
|
563.3 |
|
Non-Current Liabilities: |
|
|
|
|
|
|
||
Long-term debt |
|
|
426.7 |
|
|
|
358.7 |
|
Operating lease liabilities |
|
|
44.5 |
|
|
|
47.2 |
|
Deferred income taxes |
|
|
7.6 |
|
|
|
7.5 |
|
Pension obligations |
|
|
51.6 |
|
|
|
55.8 |
|
Postretirement health and other benefit obligations |
|
|
5.3 |
|
|
|
5.6 |
|
Long-term deferred revenue |
|
|
21.0 |
|
|
|
24.1 |
|
Other non-current liabilities |
|
|
51.3 |
|
|
|
41.2 |
|
Total non-current liabilities |
|
|
608.0 |
|
|
|
540.1 |
|
Stockholders' Equity: |
|
|
|
|
|
|
||
Preferred stock (authorized 3,500,000 shares of |
|
|
— |
|
|
|
— |
|
Common stock (75,000,000 shares authorized, 40,793,983 shares issued, 35,126,894
|
|
|
0.4 |
|
|
|
0.4 |
|
Additional paid-in capital |
|
|
612.4 |
|
|
|
613.1 |
|
Accumulated other comprehensive loss |
|
|
(80.6 |
) |
|
|
(86.4 |
) |
Retained earnings |
|
|
142.6 |
|
|
|
143.5 |
|
Treasury stock, at cost (5,667,089 and 5,698,990 shares, respectively) |
|
|
(67.2 |
) |
|
|
(67.3 |
) |
Total stockholders' equity |
|
|
607.6 |
|
|
|
603.3 |
|
Total liabilities and stockholders' equity |
|
$ |
1,776.7 |
|
|
$ |
1,706.7 |
|
THE MANITOWOC COMPANY, INC. |
||||||||||||||||
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS |
||||||||||||||||
(In millions) |
||||||||||||||||
|
|
Three Months Ended
|
|
|
Nine Months Ended
|
|
||||||||||
|
|
2024 |
|
|
2023 |
|
|
2024 |
|
|
2023 |
|
||||
Cash Flows from Operating Activities: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Net income (loss) |
|
$ |
(7.0 |
) |
|
$ |
10.4 |
|
|
$ |
(0.9 |
) |
|
$ |
47.1 |
|
Adjustments to reconcile net income (loss) to cash provided
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Depreciation expense |
|
|
14.9 |
|
|
|
13.7 |
|
|
|
44.2 |
|
|
|
41.8 |
|
Amortization of intangible assets |
|
|
0.7 |
|
|
|
0.7 |
|
|
|
2.2 |
|
|
|
2.4 |
|
Stock-based compensation expense |
|
|
2.4 |
|
|
|
2.4 |
|
|
|
8.0 |
|
|
|
7.8 |
|
Amortization of deferred financing fees |
|
|
0.3 |
|
|
|
0.3 |
|
|
|
1.0 |
|
|
|
1.0 |
|
Loss on debt extinguishment |
|
|
1.1 |
|
|
|
— |
|
|
|
1.1 |
|
|
|
— |
|
Loss (gain) on sale of property, plant and equipment |
|
|
(0.4 |
) |
|
|
0.2 |
|
|
|
(0.1 |
) |
|
|
— |
|
Deferred income tax benefit |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(14.0 |
) |
Loss on foreign currency translation adjustments |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
9.3 |
|
Changes in operating assets and liabilities |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Accounts receivable |
|
|
(11.0 |
) |
|
|
18.6 |
|
|
|
5.9 |
|
|
|
11.5 |
|
Inventories |
|
|
1.0 |
|
|
|
(6.9 |
) |
|
|
(103.2 |
) |
|
|
(114.3 |
) |
Notes receivable |
|
|
1.0 |
|
|
|
1.9 |
|
|
|
3.1 |
|
|
|
5.8 |
|
Other assets |
|
|
1.2 |
|
|
|
(2.7 |
) |
|
|
11.2 |
|
|
|
5.2 |
|
Accounts payable |
|
|
(32.9 |
) |
|
|
(34.4 |
) |
|
|
(0.6 |
) |
|
|
(14.9 |
) |
Accrued expenses and other liabilities |
|
|
(14.9 |
) |
|
|
22.1 |
|
|
|
(35.1 |
) |
|
|
34.5 |
|
Net cash provided by (used for) operating activities |
|
|
(43.6 |
) |
|
|
26.3 |
|
|
|
(63.2 |
) |
|
|
23.2 |
|
Cash Flows from Investing Activities: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Capital expenditures |
|
|
(9.3 |
) |
|
|
(23.6 |
) |
|
|
(34.4 |
) |
|
|
(59.9 |
) |
Proceeds from sale of fixed assets |
|
|
1.8 |
|
|
|
0.2 |
|
|
|
5.3 |
|
|
|
5.3 |
|
Net cash used for investing activities |
|
|
(7.5 |
) |
|
|
(23.4 |
) |
|
|
(29.1 |
) |
|
|
(54.6 |
) |
Cash Flows from Financing Activities: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Payments on revolving credit facility |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(10.0 |
) |
Proceeds from revolving credit facility |
|
|
19.9 |
|
|
|
(12.0 |
) |
|
|
67.4 |
|
|
|
— |
|
Payments on long-term debt |
|
|
300.0 |
|
|
|
— |
|
|
|
300.00 |
|
|
|
— |
|
Proceeds from long-term debt |
|
|
(300.0 |
) |
|
|
— |
|
|
|
(300.00 |
) |
|
|
— |
|
Proceeds from other debt - net |
|
|
22.1 |
|
|
|
23.8 |
|
|
|
32.2 |
|
|
|
22.6 |
|
Debt issuance costs |
|
|
(5.5 |
) |
|
|
— |
|
|
|
(6.2 |
) |
|
|
— |
|
Exercise of stock options |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
0.3 |
|
Common stock repurchases |
|
|
— |
|
|
|
— |
|
|
|
(5.7 |
) |
|
|
(5.5 |
) |
Other financing activities |
|
|
(1.2 |
) |
|
|
— |
|
|
|
(6.7 |
) |
|
|
— |
|
Net cash provided by financing activities |
|
|
35.3 |
|
|
|
11.8 |
|
|
|
81.0 |
|
|
|
7.4 |
|
Effect of exchange rate changes on cash and cash equivalents |
|
|
0.6 |
|
|
|
(0.6 |
) |
|
|
(0.2 |
) |
|
|
(0.4 |
) |
Net increase (decrease) in cash and cash equivalents |
|
|
(15.2 |
) |
|
|
14.1 |
|
|
|
(11.5 |
) |
|
|
(24.4 |
) |
Cash and cash equivalents at beginning of period |
|
|
38.1 |
|
|
|
25.9 |
|
|
|
34.4 |
|
|
|
64.4 |
|
Cash and cash equivalents at end of period |
|
$ |
22.9 |
|
|
$ |
40.0 |
|
|
$ |
22.9 |
|
|
$ |
40.0 |
|
Non-GAAP Financial Measures
Adjusted net income (loss), Adjusted DEPS, EBITDA, adjusted EBITDA, adjusted operating income, Adjusted ROIC, and free cash flows are financial measures that are not in accordance with
Adjusted Net Income (Loss) and Adjusted DEPS
The Company defines adjusted net income (loss) as net income (loss) plus the addback or subtraction of restructuring and other non-recurring items. Adjusted DEPS is defined as adjusted net income (loss) divided by diluted weighted average shares outstanding. Diluted weighted average common shares outstanding are adjusted for the effect of dilutive stock awards when there is net income (loss) on an adjusted basis, as applicable. The reconciliation of net income (loss) and diluted net income (loss) per share to adjusted net income (loss) and Adjusted DEPS for the three and nine months ended September 30, 2024 and 2023 are summarized as follows. All dollar amounts are in millions, except per share data and share amounts.
|
|
Three Months Ended
|
|
|||||||||||||||||||||
|
|
2024 |
|
|
2023 |
|
||||||||||||||||||
|
|
As reported |
|
|
Adjustments |
|
|
Adjusted |
|
|
As reported |
|
|
Adjustments |
|
|
Adjusted |
|
||||||
Gross profit |
|
$ |
87.6 |
|
|
$ |
— |
|
|
$ |
87.6 |
|
|
$ |
96.8 |
|
|
$ |
— |
|
|
$ |
96.8 |
|
Engineering, selling and administrative
|
|
|
(78.9 |
) |
|
|
2.6 |
|
|
|
(76.3 |
) |
|
|
(77.4 |
) |
|
|
0.2 |
|
|
|
(77.2 |
) |
Amortization of intangible assets |
|
|
(0.7 |
) |
|
|
— |
|
|
|
(0.7 |
) |
|
|
(0.7 |
) |
|
|
— |
|
|
|
(0.7 |
) |
Restructuring expense (2) |
|
|
(0.5 |
) |
|
|
0.5 |
|
|
|
— |
|
|
|
(0.7 |
) |
|
|
0.7 |
|
|
|
— |
|
Operating income |
|
|
7.5 |
|
|
|
3.1 |
|
|
|
10.6 |
|
|
|
18.0 |
|
|
|
0.9 |
|
|
|
18.9 |
|
Interest expense |
|
|
(9.6 |
) |
|
|
— |
|
|
|
(9.6 |
) |
|
|
(8.4 |
) |
|
|
— |
|
|
|
(8.4 |
) |
Amortization of deferred financing fees |
|
|
(0.3 |
) |
|
|
— |
|
|
|
(0.3 |
) |
|
|
(0.3 |
) |
|
|
— |
|
|
|
(0.3 |
) |
Other income (expense) - net (3) |
|
|
(4.9 |
) |
|
|
1.1 |
|
|
|
(3.8 |
) |
|
|
1.1 |
|
|
|
— |
|
|
|
1.1 |
|
Income (loss) before income taxes |
|
|
(7.3 |
) |
|
|
4.2 |
|
|
|
(3.1 |
) |
|
|
10.4 |
|
|
|
0.9 |
|
|
|
11.3 |
|
(Provision) benefit for income taxes (4) |
|
|
0.3 |
|
|
|
(0.1 |
) |
|
|
0.2 |
|
|
|
— |
|
|
|
(3.3 |
) |
|
|
(3.3 |
) |
Net income (loss) |
|
$ |
(7.0 |
) |
|
$ |
4.1 |
|
|
$ |
(2.9 |
) |
|
$ |
10.4 |
|
|
$ |
(2.4 |
) |
|
$ |
8.0 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Diluted weighted average common shares outstanding |
|
|
35,123,015 |
|
|
|
|
|
|
35,123,015 |
|
|
|
35,787,704 |
|
|
|
|
|
|
35,787,704 |
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Diluted net income (loss) per share |
|
$ |
(0.20 |
) |
|
|
|
|
$ |
(0.08 |
) |
|
$ |
0.29 |
|
|
|
|
|
$ |
0.22 |
|
(1) |
The adjustment in 2024 represents |
(2) |
The adjustment in 2024 and 2023 represents the addback of restructuring expense. |
(3) |
The adjustment in 2024 represents |
(4) |
The adjustment in 2024 represents the net loss tax impacts of items (1), (2), and (3). The adjustment in 2023 represents the net income tax impact of items (1) and (2) and the removal of a |
|
|
Nine Months Ended
|
|
|||||||||||||||||||||
|
|
2024 |
|
|
2023 |
|
||||||||||||||||||
|
|
As reported |
|
|
Adjustments |
|
|
Adjusted |
|
|
As reported |
|
|
Adjustments |
|
|
Adjusted |
|
||||||
Gross profit |
|
$ |
279.8 |
|
|
$ |
— |
|
|
$ |
279.8 |
|
|
$ |
326.1 |
|
|
$ |
— |
|
|
$ |
326.1 |
|
Engineering, selling and administrative
|
|
|
(238.6 |
) |
|
|
8.1 |
|
|
|
(230.5 |
) |
|
|
(240.1 |
) |
|
|
11.0 |
|
|
|
(229.1 |
) |
Amortization of intangible assets |
|
|
(2.2 |
) |
|
|
— |
|
|
|
(2.2 |
) |
|
|
(2.4 |
) |
|
|
— |
|
|
|
(2.4 |
) |
Restructuring expense (2) |
|
|
(3.4 |
) |
|
|
3.4 |
|
|
|
— |
|
|
|
(1.0 |
) |
|
|
1.0 |
|
|
|
— |
|
Operating income |
|
|
35.6 |
|
|
|
11.5 |
|
|
|
47.1 |
|
|
|
82.6 |
|
|
|
12.0 |
|
|
|
94.6 |
|
Interest expense |
|
|
(28.4 |
) |
|
|
— |
|
|
|
(28.4 |
) |
|
|
(25.5 |
) |
|
|
— |
|
|
|
(25.5 |
) |
Amortization of deferred financing fees |
|
|
(1.0 |
) |
|
|
— |
|
|
|
(1.0 |
) |
|
|
(1.0 |
) |
|
|
— |
|
|
|
(1.0 |
) |
Other income (expense) - net (3) |
|
|
(3.9 |
) |
|
|
1.1 |
|
|
|
(2.8 |
) |
|
|
(10.0 |
) |
|
|
9.3 |
|
|
|
(0.7 |
) |
Income before income taxes |
|
|
2.3 |
|
|
|
12.6 |
|
|
|
14.9 |
|
|
|
46.1 |
|
|
|
21.3 |
|
|
|
67.4 |
|
(Provision) benefit for income taxes (4) |
|
|
(3.2 |
) |
|
|
(0.7 |
) |
|
|
(3.9 |
) |
|
|
1.0 |
|
|
|
(17.3 |
) |
|
|
(16.3 |
) |
Net income (loss) |
|
$ |
(0.9 |
) |
|
$ |
11.9 |
|
|
$ |
11.0 |
|
|
$ |
47.1 |
|
|
$ |
4.0 |
|
|
$ |
51.1 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Diluted weighted average common shares outstanding |
|
|
35,251,847 |
|
|
|
|
|
|
35,750,656 |
|
|
|
35,836,672 |
|
|
|
|
|
|
35,836,672 |
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Diluted net income (loss) per share |
|
$ |
(0.03 |
) |
|
|
|
|
$ |
0.31 |
|
|
$ |
1.31 |
|
|
|
|
|
$ |
1.43 |
|
(1) |
The adjustment in 2024 represents |
(2) |
The adjustment in 2024 and 2023 represents the addback of restructuring expense. |
(3) |
The adjustment in 2024 represents |
(4) |
The adjustment in 2024 represents the net loss tax impacts of items (1), (2), and (3). The adjustment in 2023 represents the net income tax impact of items (1), (2), and (3), the removal of a |
Adjusted ROIC
The Company defines Adjusted ROIC as adjusted net operating profit after tax (“Adjusted NOPAT”) for the trailing twelve-months ended divided by the five-quarter average of invested capital. Adjusted NOPAT is calculated for each quarter by taking operating income plus the addback of amortization of intangible assets and the addback or subtraction of restructuring expenses, other non-recurring items - net, and provision for income taxes, which is determined using a
The Company’s Adjusted ROIC as of September 30, 2024 was
|
Three Months Ended |
|
|
|
|
||||||||||||||
|
September 30,
|
|
|
June 30,
|
|
|
March 31,
|
|
|
December 31,
|
|
|
Trailing
|
|
|||||
Operating income |
$ |
7.5 |
|
|
$ |
12.9 |
|
|
$ |
15.2 |
|
|
$ |
9.8 |
|
|
$ |
45.4 |
|
Amortization of intangible assets |
|
0.7 |
|
|
|
0.8 |
|
|
|
0.7 |
|
|
|
0.8 |
|
|
|
3.0 |
|
Restructuring expense |
|
0.5 |
|
|
|
2.3 |
|
|
|
0.6 |
|
|
|
0.3 |
|
|
|
3.7 |
|
Other non-recurring items - net1 |
|
2.6 |
|
|
|
5.4 |
|
|
|
0.1 |
|
|
|
10.8 |
|
|
|
18.9 |
|
Adjusted operating income |
|
11.3 |
|
|
|
21.4 |
|
|
|
16.6 |
|
|
|
21.7 |
|
|
|
71.0 |
|
Provision for income taxes |
|
(1.7 |
) |
|
|
(3.2 |
) |
|
|
(2.5 |
) |
|
|
(3.3 |
) |
|
|
(10.7 |
) |
Adjusted NOPAT |
$ |
9.6 |
|
|
$ |
18.2 |
|
|
$ |
14.1 |
|
|
$ |
18.4 |
|
|
$ |
60.4 |
|
|
September 30,
|
|
|
June 30,
|
|
|
March 31,
|
|
|
December 31,
|
|
|
September 30,
|
|
|
5-Quarter
|
|
||||||
Total assets |
$ |
1,776.7 |
|
|
$ |
1,747.9 |
|
|
$ |
1,780.6 |
|
|
$ |
1,706.7 |
|
|
$ |
1,692.2 |
|
|
$ |
1,740.8 |
|
Total liabilities |
|
(1,169.1 |
) |
|
|
(1,155.6 |
) |
|
|
(1,184.6 |
) |
|
|
(1,103.4 |
) |
|
|
(1,119.2 |
) |
|
|
(1,146.4 |
) |
Net total assets |
|
607.6 |
|
|
|
592.3 |
|
|
|
596.0 |
|
|
|
603.3 |
|
|
|
573.0 |
|
|
|
594.4 |
|
Cash and cash equivalents |
|
(22.9 |
) |
|
|
(38.1 |
) |
|
|
(31.5 |
) |
|
|
(34.4 |
) |
|
|
(40.0 |
) |
|
|
(33.4 |
) |
Short-term borrowings and current portion of long-term debt |
|
40.5 |
|
|
|
21.4 |
|
|
|
42.5 |
|
|
|
13.4 |
|
|
|
30.3 |
|
|
|
29.6 |
|
Long-term debt |
|
426.7 |
|
|
|
406.3 |
|
|
|
372.7 |
|
|
|
358.7 |
|
|
|
368.5 |
|
|
|
386.6 |
|
Income tax assets - net |
|
(10.1 |
) |
|
|
(4.4 |
) |
|
|
(3.4 |
) |
|
|
(2.6 |
) |
|
|
(4.3 |
) |
|
|
(4.9 |
) |
Invested capital |
$ |
1,041.8 |
|
|
$ |
977.5 |
|
|
$ |
976.3 |
|
|
$ |
938.4 |
|
|
$ |
927.5 |
|
|
$ |
972.3 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Adjusted ROIC |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
6.2 |
% |
(1) |
Other non-recurring items - net for the three months ended September 30, 2024 relate to |
Free Cash Flows
The Company defines free cash flows as net cash provided by (used for) operating activities less cash outflow from investment in capital expenditures. The reconciliation of net cash provided by (used for) operating activities to free cash flows for the three and nine months ended September 30, 2024 and 2023 are summarized as follows. All dollar amounts are in millions.
|
|
Three Months Ended
|
|
Nine Months Ended
|
||||||||||||
|
|
2024 |
|
2023 |
|
2024 |
|
2023 |
||||||||
Net cash provided by (used for) operating activities |
|
$ |
(43.6 |
) |
|
$ |
26.3 |
|
|
$ |
(63.2 |
) |
|
$ |
23.2 |
|
Capital expenditures |
|
|
(9.3 |
) |
|
|
(23.6 |
) |
|
|
(34.4 |
) |
|
|
(59.9 |
) |
Free cash flows |
|
$ |
(52.9 |
) |
|
$ |
2.7 |
|
|
$ |
(97.6 |
) |
|
$ |
(36.7 |
) |
EBITDA and Adjusted EBITDA
The Company defines EBITDA as net income (loss) before interest, taxes, depreciation, and amortization. The Company defines adjusted EBITDA as EBITDA plus the addback or subtraction of restructuring expense, other (income) expense - net, and other non-recurring items - net. The reconciliation of net income (loss) to EBITDA, and further to adjusted EBITDA for the three and nine months ended September 30, 2024 and 2023 and trailing twelve months are summarized as follows. All dollar amounts are in millions.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
Three Months Ended
|
|
|
Nine Months Ended
|
|
|
Trailing
|
|
|||||||||||
|
2024 |
|
|
2023 |
|
|
2024 |
|
|
2023 |
|
|
Months |
|
|||||
Net income (loss) |
$ |
(7.0 |
) |
|
$ |
10.4 |
|
|
$ |
(0.9 |
) |
|
$ |
47.1 |
|
|
$ |
(8.8 |
) |
Interest expense and amortization of deferred
|
|
9.9 |
|
|
|
8.7 |
|
|
|
29.4 |
|
|
|
26.5 |
|
|
|
38.1 |
|
Provision (benefit) for income taxes |
|
(0.3 |
) |
|
|
— |
|
|
|
3.2 |
|
|
|
(1.0 |
) |
|
|
9.2 |
|
Depreciation expense |
|
14.9 |
|
|
|
13.7 |
|
|
|
44.2 |
|
|
|
41.8 |
|
|
|
59.0 |
|
Amortization of intangible assets |
|
0.7 |
|
|
|
0.7 |
|
|
|
2.2 |
|
|
|
2.4 |
|
|
|
3.0 |
|
EBITDA |
|
18.2 |
|
|
|
33.5 |
|
|
|
78.1 |
|
|
|
116.8 |
|
|
|
100.5 |
|
Restructuring expense |
|
0.5 |
|
|
|
0.7 |
|
|
|
3.4 |
|
|
|
1.0 |
|
|
|
3.7 |
|
Other non-recurring items - net (1) |
|
2.6 |
|
|
|
0.2 |
|
|
|
8.1 |
|
|
|
11.0 |
|
|
|
18.9 |
|
Other (income) expense - net (2) |
|
4.9 |
|
|
|
(1.1 |
) |
|
|
3.9 |
|
|
|
10.0 |
|
|
|
6.9 |
|
Adjusted EBITDA |
$ |
26.2 |
|
|
$ |
33.3 |
|
|
$ |
93.5 |
|
|
$ |
138.8 |
|
|
$ |
130.0 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Adjusted EBITDA margin percentage |
|
5.0 |
% |
|
|
6.4 |
% |
|
|
5.9 |
% |
|
|
8.5 |
% |
|
|
6.0 |
% |
(1) |
Other non-recurring items - net for the three months ended September 30, 2024 relate to |
(2) |
Other (income) expense - net includes net foreign currency gains (losses), other components of net periodic pension costs, and other items in the three, nine, and trailing twelve months ended September 30, 2024 and the three and nine months ended September 30, 2023. Other expense – net for the nine and trailing twelve months ended September 30, 2023 includes a |
View source version on businesswire.com: https://www.businesswire.com/news/home/20241030566930/en/
Ion Warner
SVP, Marketing and Investor Relations
+1 414-760-4805
Source: The Manitowoc Company, Inc.
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